Kyivstar acquires part of Comfy’s business

Ukrainian mobile operator Kyivstar plans to acquire a stake in the Comfy network, one of the key players in the Ukrainian electronics and home appliances market, founded by entrepreneur Stanislav Ronis. Forbes Ukraine reports this, noting that the transaction is in the final stages and may be announced in the near future.

Digital transformation as a motive for Kyivstar’s investments

According to the publication, Kyivstar’s interest in Comfy is connected with the operator’s strategy of transforming from a classic telecom company into a broader digital platform. As part of this course, the operator is considering the development of the marketplace, as well as possible synergy with other digital services assets.

The former top manager of a large e-commerce project said that the parties could have agreed at the beginning of the year, and now the deal has actually reached the finish line. This information was confirmed by an investment banker who spoke to journalists on condition of anonymity, noting that an official announcement is expected next week.

Position of the regulator and companies

At the same time, the Antimonopoly Committee of Ukraine’s response to a request from Forbes Ukraine stated that as of December 30, the regulator had not received any applications from Kyivstar to acquire new companies. Comfy also refrained from directly confirming or denying a possible deal, but emphasized that as part of its long-term strategy, the company is analyzing options for attracting investments or partnerships that could strengthen individual business areas.

At the same time, the retailer’s press service stated that the key beneficiaries are not considering scenarios that would lead to the loss of control over the company. Kyivstar declined to comment on the information about the potential deal.

According to a source in the investment market, it is not about selling Comfy in its entirety. He suggests that Kyivstar may buy out the management stake of about 10%, as well as part of the packages belonging to co-owner Svitlana Hutsul and Stanislav Ronis himself. According to his assessment, the operator’s total stake may approach 50%, while Ronis will retain the status of the controlling shareholder.

Comfy valuation

The financial terms of the potential deal are not officially disclosed. At the same time, several sources in the investment market believe that Comfy may be valued at more than $300 million. Some of the experts interviewed suggest that the retailer’s market value may correspond to multipliers in the range of 4-7 EBITDA.

Vadim Khristoforov, vice president of investment banking company Altius Capital, points out that European companies with a similar business model usually trade at lower multiples, and taking into account the funds in Comfy’s accounts, he estimates the business at $91-106 million. At the same time, other market participants note that the price formation takes into account not only financial indicators, but also market share, contracts with suppliers, team, infrastructure and development potential.